1. Field of the Invention
The invention relates to a method of selling excess component inventory, and more specifically, to a method of selling excess component inventory in a closed forum, wherein both the seller and the buyer in the initial forum use the type of components sold. After a prescribed period of time, items also become visible in a sub-forum for pre-approved excess liquidator companies to access only the sub-forum and place offers for consideration.
2. Description of the Prior Art
Original Equipment Manufacturers (“OEM”) and Contract Electronics Manufacturers (“CEM”) generally do not manufacture the sub-components used in their products. Such sub-components are purchased in bulk from sub-component manufacturers. When an OEM stops making a particular product, they typically have excess inventory of one or more sub-components. To recoup the loss associated with idle excess inventory, most OEMs sell or attempt to sell such excess inventory through an excess liquidator, a broker for excess inventory. This system, however, has several disadvantages that may be better explained through the use of an example.
While it is understood that any type of goods manufacturer may be used as an example, the following example is addressed to electronics and electronics manufacturers. OEM1 produces computer motherboards. The motherboards utilize a sub-component structured to convert data into a signal for an audio speaker. This sub-component is purchased from a sub-component manufacturer (“MfgA”) and is identified by their Manufacturer's Part Number (“MPN1”). OEM1, however, utilizes an Internal Part Number, (“IPN1”), to identify the location on the board where the first sub-component will be attached. By identifying the location on the board, OEM1 allows the possibility of using interchangeably equivalent sub-components (Suggested Alternates). MPN1 is also used by a second component manufacturer (“OEM2”) who makes circuit boards for a customer that manufactures portable music devices. OEM2 has a second IPN assigned for the first chip and further utilizes a Customer Part Number (“CPN”) to track the first chip. That is, the second component manufacturer's customer may demand that all of its suppliers, including the second component manufacturer, utilize a common tracking number, these numbers are the CPNs.
When OEM1 ends production of the first type of computer motherboard, OEM1 has excess inventory of the first chip. While OEM1 would like to sell the excess inventory of MPN1, OEM1 does not wish to alert competitors that it is ending production of the first type of computer motherboard. Thus, OEM1 utilizes a first broker (“Broker1”) to sell the excess inventory of MPN1. The first broker, however, takes a fee, typically the difference between the cost Broker1 pays to OEM1 and the sell price they can generate by selling MPN1 to another broker or OEM in need of that component. At about the same time, MfgA is having difficulty meeting demand for MPN1 and a second component manufacturer (“OEM2”) is seeking to purchase more MPN1 chips. Accordingly, OEM2 engages a second broker (“Broker2”) to locate and acquire more MPN1 chips. Broker2 also requires a fee from OEM2, typically the difference between whatever Broker2 can purchase the chips for and the price that OEM2 agrees to pay. After some delay, Broker1 and Broker2 engage and arrange for the sale of MPN1 chips, effectively from OEM1 to OEM2. Thus, one disadvantage of this system is that there are multiple broker fees applied to the sale of the components, that is, MPN1 chips.
Another disadvantage is that the different OEMs, that is, OEM1, OEM2, MfgA, and OEM2's customer, each have a different tracking, or identification number, associated with MPN1. Thus, if Broker1 were to utilize OEM1's internal part number (“IPN”) when offering the MPN1 chips for sale, while at the same time Broker2 utilized OEM2's internal part number (“IPN”) when seeking to buy MPN1 chips, the brokers may not realize there is both a current supply and demand for MPN1 chips.
While a simple solution may seem to be the use of the Manufacturer Part Number in every instance, however, reality is not that simple. First, usage rates of components and sub-components are guarded secrets that OEMs want to protect and their competitors wish to discover. As such, OEMs are reluctant to disclose part numbers of components being resold. Furthermore, components may be produced by more than one sub-component manufacturer. That is, in addition to OEM1 utilizing MPN1, MfgB's manufacturer part number may be identical or substantially similar to MPN1, however, it effectively is identified with a second sub-component manufacturer's part number (“MPN2”). The MPN1 chips from MfgA and MfgB may be mixed while at OEM1. This is one reason OEM1 assigns the chips an internal part number or IPN. Thus, when the OEM1 wishes to sell the excess inventory of MPN1 chips, it cannot simply use MfgA's MPN1 part number. Thus, much is left to the brokers to inform each other what is for sale and what is needed without disclosing confidential information.
Another disadvantage to this system is that OEMs with a need to sell/buy excess inventory may be related entities, such as, but not limited to, a parent and subsidiary company. If the parent and subsidiary use different IPNs, a situation may arise, wherein a parent company utilizes a first broker and the subsidiary company utilizes a second broker to complete the sale of excess inventory. Thus, a company may actually pay two broker fees to transfer components to a related company or even between different manufacturing locations within the same company.